Sustained increases in property values and tax assessments led City of Miami Beach officials to reduce the City's tax rate for the second year in a row, while proposing a budget for fiscal 2007 that represented a $30 million increase over the 2006 budget. The property tax rate may drop as much as 5 percent.
In technical parlance, the tax rate is known as "millage," which spell check usually tries to "correct" to "mileage." A mill is 1/10 of one per cent.
In Miami Beach, where the exploding condo, single family residence, and commercial real estate market has meant rising tax assessment values and more money for government, officials are planning to lower the City's tax rate for the second straight year. For the 2007 fiscal year, the City Commission unanimously proposed reducing property tax rate from its current level of $8.07 for every $1,000 of assessed property value to $7.67, that is, from 8.07 mills to 7.67 mills. This rate was tentatively set by the City Commission at its July 12 meeting.
The City's millage is in addition to the millage levied by all other applicable taxing authorities, including the County, School Board, South Florida Water Management District and other entities authorized by law to establish millages applied against a property's taxable value in order to be funded by property taxes.
Any property's tax bill is always calculated in a two-part formula: taxable property value mulyipled by applicable millage rate.
Although the budget is increasing by 14 per cent, valuation increases more than offset the decease in tax rate.
Also for the second year, commissioners also approved a Homeowners Dividend. This year, homeowners whose Miami Beach properties have homestead exemptions on their permanent residence will be mailed a $300 check from the City. The 2005 dividend was $200.
For an explanation of why this Homeowners Dividend is unconstitutional,
click here.
Despite the rate decrease, the City's proposed $238 million budget for fiscal 2007 is still $30 million higher than fiscal year 2006's budget of $207 million, representing an increase of over 14 per cent. It includes proposed funding for more police, lifeguards and code and building inspectors, as well seven-day a week garbage collection along Ocean Drive and elsewhere, and an increase in the City's reserve funds.
According to Miami Beach City Manager Jorge Gonzalez, the proposed millage decrease is the biggest reduction in the City in the past 15 years. It will mean average savings of about $30 for an average residential property owner with homestead exemption and a home valued at $270,000.
By constitution and statute, a property's assessed value can be increased by only 3 per cent or the cost of living index, whichever is less, over the previous year's assessment, if the property had homestead exemption in the preceding year and qualifies again for the current year, here 2006. Once homestead property is sold or otherwise transfered, the "cap" on increases is removed and the property is reassessed at current fair market value as of the annual January 1 assessment date, the same standard which applies to all-non homestead property in the State.
The proposed millage rate is tentative, and is subject to two public hearings in September before the millage rate is finalized. The first public hearing is scheduled for September 6 at City Hall.
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Daniel A. Weiss is a former Attorney Special Master for the Miami-Dade County Value Adjustment Board. Mr. Weiss now represents commercial, institutional charitable, commercial, high-end residential, agricultural and municipal taxpayers at VAB proceedings throughout the State of Florida. Mr. Weiss handles both valuation and legal claims.
Mr. Weiss has over 25 years property tax experience. Mr. Weiss represented the Miami-Dade County taxing authorities in litigation and appeals between 1981 and 1995 as a Miami-Dade Assistant County Attorney and has since represented taxpayers in property tax matters.
In Florida Trend magazine™'s Legal Elite's issue, July 2004, Mr. Weiss was selected by his peers as one of the top 30 government lawyers in the State of Florida.
Mr. Weiss appears as one of Florida's Super Lawyers 2006 in the publication of the same name. He was named by his peers as one of the top 6 local government lawyers in South Florida.
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